Employers urged to link total reward with the employer brand


Employers urged to link total reward with the employer brand

Aligning total rewards with your employer branding can help to give your company a vital edge as the economy emerges from recession. This is one of the conclusions from a new report by the Chartered Institute of Personnel and Development, produced in association with Mercer.

The report identifies emerging themes and examples of good practice and highlights those areas where approaches to link the employer brand with the reward offering have worked particularly well. It also addresses the challenges that companies have faced during their “employer branding journey” and how these can be overcome.


Key research findings

  • Link to strategy: Reward can influence employee behaviours, so it’s vital that reward is linked to behaviours that ultimately support organisation strategy.

  • Communicating reward: Communication is a crucial way of reinforcing the employer brand as it raises awareness of the rewards offered by an organisation.

  • Non-financial rewards: While financial rewards are important, non-financial rewards can also be key in reinforcing the brand.

  • Evaluating reward: It is important to assess whether your reward approach is adding value to the employer brand. This can be done using HR metrics such as employee surveys or performance management data, as well as business metrics such as customer service or budget reductions.

A final word

“There are many benefits that can be derived from having a compelling employer brand that is supported by employee rewards, which is demonstrated in our interviews. Engagement can be enhanced by a brand that is demonstrably aligned to rewards as it provides an opportunity for companies to put their money where their mouth is in promoting desired corporate behaviours and image. Engaged employees who believe in the brand then promote the image more effectively to customers.” - Charles Cotton, reward adviser, CIPD.

“All participants in this research agree that aligning rewards with the employer brand helps in attracting, retaining and motivating staff. It demonstrates the employer’s financial commitment to the employer proposition, which in turn fosters a positive employee experience. In the long-term, branding and reward should become mutually supportive, ensuring authenticity within the organisation.” - Chris Johnson, head of Mercer’s human capital business.

Want to know more?

Title: Employer Branding and Total Reward, Chartered Institute of Personnel and Development in association with Mercer, April 2010.

Research details: The report draws on two sources: a survey of 44 organisations undertaken during May and June 2009; interviews and a panel discussion with nine organisations - Abbey, Bacardi, Malmaison and Hotel du Vin, McDonald’s, Midland Heart and tw telecom.

Availability: To download the 19-page report in PDF format, go to: www.cipd.co.uk/subjects/corpstrtgy/empbrand/_employer_branding_reward.htm.

The Chartered Institute of Personnel and Development (CIPD) is “Europe’s largest HR and development professional body with over 135,000 members, supporting and developing those responsible for the management and development of people within organisations”. For more information visit www.cipd.co.uk.

Mercer is a “leading global provider of consulting, outsourcing and investment services”. Mercer works with clients to solve their benefit and human capital issues, designing and helping manage health, retirement and other benefits. Mercer’s 18,000 employees are based in more than 40 countries. For more information, visit www.mercer.com.